Love or hate him, President Trump certainly can make America’s small business feel good about their future.
For confirmation look no further than the latest report from the NFIB Small Business Optimism Index, according to which “small business confidence blasted off the day after the 2016 election and remained in the stratosphere for all of 2017,” making last year an all-time record setter for the NFIB Index of Small Business Optimism.
Having hit an all time high in November, the December NFIB Small Business Optimism Index fell 2.6 points to 104.9 in December, down from the record 107.5 last month. The drop suggested that the burst of confidence in November was more of a rebound after two months of lower readings in September and October related to uncertainties after three brutal hurricanes in late August and early September. Discounting the November index, the December reading is in line with the overall strong tone for 2017 as a whole, and reflected solid conditions.
Two of the December components posted gains, five declined, and three remained unchanged. Moving the Index moderately lower were declines in Expected Better Business Conditions (11-point decline) which tends to fluctuate sharply and Inventory Plans (8-point decline). Small business owners were bedeviled by a labor shortage in 2017 that grew more intense as optimism rose. The NFIB Jobs Report last week showed that problem reaching record levels.
Offsetting the dip in Expected Better Business Conditions was a dramatic,14-point improvement in Actual Sales for December. In November, a net negative five percent of all firms reported sales increases. A net nine percent reported higher sales in December, indicating a very strong holiday season for small business.
But the real story was not the modest slowdown in December optimism, but the monthly data in 2017: “2017 was the most remarkable year in the 45-year history of the NFIB Optimism Index,” said NFIB President and CEO Juanita Duggan. “With a massive tax cut this year, accompanied by significant regulatory relief, we expect very strong growth, millions more jobs, and higher pay for Americans.”
The Optimism Index for last month came in at 104.9, slightly lower than the near-record November report but still a historically exceptional performance. That makes 2017 the strongest year ever in the history of the survey. The average monthly Index for 2017 was 104.8. The previous record was 104.6, set in 2004.
“We’ve been doing this research for nearly half a century, longer than anyone else, and I’ve never seen anything like 2017,” said NFIB Chief Economist Bill Dunkelberg. “The 2016 election was like a dam breaking. Small business owners were waiting for better policies from Washington, suddenly they got them, and the engine of the economy roared back to life.”
“There’s a critical shortage of qualified workers and it’s becoming a real cost driver for small businesses,” said Dunkelberg. “They are raising compensation for workers in order to attract and keep good employees, but that’s a positive indicator for the overall economy.”
Driving record optimism in 2017 was the expectation of better economic policies from Washington. Suspending the regulatory assault on business and now a massive tax cut answered two of the three top concerns for small business owners, according to NFIB research.
“The lesson of 2017 is that better policies make for better economic results,” said Duggan. “The evidence is overwhelming that small business owners pay close attention to Washington, and that federal policies affect their decisions on whether to hire, whether to invest, whether to grow inventory, and whether to seek capital.”
#AdiosAmerica: Republicans (with Democrats) Are Selling Out America to Corporations to Decrease Living Standards
Since the turn of the 20th century, living standards became an important, almost central part to the progressive and labor movements of those times. Now it has become a mainstream of both parties to sell out your labor to lowest bidders in low and high paying jobs. Low paying jobs are being taken by low-wage immigrants protected by Democrats and the high-end jobs are brought in by bi-partisan means, and greatly boasted by Republicans.
This effort has crippled the middle-class for close to 30 years now and with the job market being already tightened by the looming threat of A.I., importing more workers, whether legal or illegal is decreasing the value of labor in America for each and American Citizen. Corporations and Businesses, who rely on keeping employee costs as low as possible generally don’t complain about these practices across the board, why would they?
Americans have an increasingly difficult task ahead of them with the mass illegal migration at the Southern Border but also the legal importation of immigrants through H1-b1 Visas. These challenges will increasingly change the look, heritage of this country. There is no incentive for either Government or Business to care about reigning in immigration to the benefit of the American worker, the bottom dollar line will look better anyways.
Soros Newest Investor Of Tesla Bonds
Tesla looks to have a new bond holder and it’s none other than George Soros. Whatever this mean, Soros has also taken a stake in Crypto-Currencies .
Zerohedge Reports: Amid Elon Musk’s darkest hour in late March – as his stocks and bonds tumbled in price – it seems there was at least one other billionaire willing to buy the ‘blood on the street’.
According to the latest 13Fs, George Soros’ investment firm took a $35 million stake in Tesla’s convertible bonds during the first three months of the year.
As a reminder, convertibles are hybrid securities, either bonds or preferred stock, that can be exchanged for a predetermined number of common shares. That effectively lets an investor participate in stock-price changes, but with the yield and greater security of a fixed-income instrument.
The March 2019 Converts bounced handsomely off those lows – tracking the stock’s divergent bounce – but in recent days has fallen back towards the lows, catching down to the straight bonds record low price.
“Racial Bias Education Day” To Close Down Starbucks Nationwide
Starbucks is going to the illogical extreme by taking an entire day to put their employees through what they call “Racial Bias Education Day”. Coming after a viral videos showed two men being arrested in a Starbucks in Philadelphia. Starbucks almost instantly gave into calls to do ‘something’ but will this really fix anything in a culture where ‘racism’ is more of a political talking point than an actual substantive conversation or debate.
CNBC Reports: Starbucks said Tuesday it will be closing all of its company-owned restaurants in the U.S. during the afternoon of May 29 to conduct a racial-bias education program.
“I’ve spent the last few days in Philadelphia with my leadership team listening to the community, learning what we did wrong and the steps we need to take to fix it,” Kevin Johnson, CEO of Starbucks, said in a statement Tuesday. “While this is not limited to Starbucks, we’re committed to being a part of the solution. Closing our stores for racial bias training is just one step in a journey that requires dedication from every level of our company and partnerships in our local communities.”